10:28 AM EDT, 07/29/2024 (MT Newswires) -- National Bank of Canada in a note entitled 'Tactical Returns Remain Robust; OFS Preview Q2/24' and published over the weekend updated activity forecasts for its oilfield services sector coverage, and in association, revised estimates and targets through its 2025e forecast horizon.

The bank retained Sector Perform ratings on Precision Drilling ( PDS ) , Trican Well Service ( TOLWF ) , CES Energy Solutions ( CESDF ) Pason Systems Inc. ( PSYTF ) and Enerflex Ltd. ( EFXT ) in its second-quarter earnings preview of oilfield services companies.

In the group, only CES's price target was changed, increasing to $9.25 from $7, the bank said.

National continues to advocate for "positioning towards the potential long-term value opportunity through quality and those best oriented towards the value thematics; well-entrenched, efficient and diversified offerings, who can best support high-cyclic ROCE and high-quantum free cash generation to support ample return of capital and ultimately dictate a re-rate."

The bank added: "The market has been selectively validating certain names, and as we revisit our previous scorecard approach (relative earnings momentum, free cash flow proposition, earnings sensitivity & relative value), we continue to bias the group (albeit with little distinction on risk-adjusted returns, we continue to view this as a dealers choice) as; PD, TCW, CEU, PSI and EFX, and retain our Sector Perform rating across the group (CEU the only notable price target change)."

Price: 100.32, Change: -0.86, Percent Change: -0.85